DAK closing will have wide repurcussions

Published: Friday, June 21, 2013 at 1:59 p.m.

Last Modified: Friday, June 21, 2013 at 1:59 p.m.

The economic pain of the closing of DAK America's Navassa plant will spread beyond the homes of the 600 workers who will lose their jobs and into the Wilmington-area economy at large.

For one thing, another 250 people could lose their jobs as a result of the plant closing, according to William "Woody" Hall, an economist at the Swain Center for Business and Economic Services at the University of North Carolina Wilmington.

If the 600 remained unemployed, the loss in income could total $38 million a year in the three counties that make up the Wilmington metropolitan area. Brunswick County would absorb most of that, at $35.2 million annually. That figure would be lower, though, as workers find other employment.

But the drop in Wilmington-area economic activity could total $194 million in gross county product, with $186 million of that in Brunswick, Hall figures.

Other possible losses include $5.4 million in state and local taxes and $7.7 million in federal taxes.

The loss in employment could spread from DAK itself to nine economic sectors, with food services and drinking places among the hardest hit, possibly losing 35 jobs, according to Hall's calculations.

Wholesale trade businesses could see a drop of 35 jobs, and truck transportation 15 jobs.

Though the plant isn't in the town limits of Navassa, the town will feel the closing's effects, said Mayor Eulis Willis.

"It's going to be devastating," he said Friday. "We have quite a few folks here that worked there. It's going to have an impact.

"In 2008, the boat company left, and now this is happening," the mayor added, referring to the closing of Brunswick Corp.'s U.S. Marine operation.

"We are basically industrial-dependent, with people trained to be able to go someplace to get a factory job – and we are constantly losing factory jobs.

"Luckily most of our folks have been able to get employment in Wilmington."

Willis saw some hope in the promise of job training and other assistance.

Though he said the closing was a sign of the times, he faulted those who he says have discouraged manufacturing businesses and the building of a port at Southport.

Plus, Willis said, "our corporate income taxes are so high companies are scared to come in and locate."

"It's been one of our largest employers," said Brunswick County Commissioner Frank Williams, whose district includes the DAK plant. "My heart goes out to those who lost their jobs."

<p>The economic pain of the closing of DAK America's Navassa plant will spread beyond the homes of the 600 workers who will lose their jobs and into the Wilmington-area economy at large.</p><p>For one thing, another 250 people could lose their jobs as a result of the plant closing, according to William "Woody" Hall, an economist at the Swain Center for Business and Economic Services at the University of North Carolina Wilmington. </p><p>If the 600 remained unemployed, the loss in income could total $38 million a year in the three counties that make up the Wilmington metropolitan area. Brunswick County would absorb most of that, at $35.2 million annually. That figure would be lower, though, as workers find other employment.</p><p>But the drop in Wilmington-area economic activity could total $194 million in gross county product, with $186 million of that in Brunswick, Hall figures.</p><p>Other possible losses include $5.4 million in state and local taxes and $7.7 million in federal taxes.</p><p>The loss in employment could spread from DAK itself to nine economic sectors, with food services and drinking places among the hardest hit, possibly losing 35 jobs, according to Hall's calculations.</p><p>Wholesale trade businesses could see a drop of 35 jobs, and truck transportation 15 jobs.</p><p>Though the plant isn't in the town limits of Navassa, the town will feel the closing's effects, said Mayor Eulis Willis.</p><p>"It's going to be devastating," he said Friday. "We have quite a few folks here that worked there. It's going to have an impact.</p><p>"In 2008, the boat company left, and now this is happening," the mayor added, referring to the closing of Brunswick Corp.'s U.S. Marine operation. </p><p>"We are basically industrial-dependent, with people trained to be able to go someplace to get a factory job – and we are constantly losing factory jobs. </p><p>"Luckily most of our folks have been able to get employment in Wilmington."</p><p>Willis saw some hope in the promise of job training and other assistance.</p><p>Though he said the closing was a sign of the times, he faulted those who he says have discouraged manufacturing businesses and the building of a port at Southport.</p><p>Plus, Willis said, "our corporate income taxes are so high companies are scared to come in and locate."</p><p>"It's been one of our largest employers," said Brunswick County Commissioner Frank Williams, whose district includes the DAK plant. "My heart goes out to those who lost their jobs."</p><p><i></p><p><a href="http://www.starnewsonline.com/section/topic99"><b>Wayne Faulkner</b></a>: 343-2329</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @bizniznews </i></p>